Two Lehman Brothers entities and the General Electric Pension Trust recently won a decisive court case in France – a ruling with significant implications for special purpose vehicles (SPVs) that own French assets and find themselves in trouble with their lenders. Â
A few weeks ago, the UK branch of Lehman, a US entity of the same firm and GE’s pension fund saw their right to a French Safeguard Procedure (sauvegarde) – similar to Chapter 11-style protection in the US – upheld in the Versailles Court of Appeals after a four-year legal tussle with bondholders.
EUROPE NEWS: French REsistance
French courts have upheld protection from bankruptcy for the massive Coeur Défense office complex in Paris, which ultimately is owned by two Lehman entities and the GE Pension Trust. PERE Magazine April 2012 issue.
